Sale of Brand New Single-Tenant Starbucks in Hesperia

Hesperia, Ca. – Hanley Investment Group Real Estate Advisors, announced today that the firm has completed the sale of a brand-new construction single-tenant corporate Starbucks in Southern California.

In San Bernardino County in the city of Hesperia, Hanley Investment Group Executive Vice President Bill Asher and Associate Jeff Lefko represented the seller in the sale of a brand-new single-tenant Starbucks with a drive-thru for $3,190,000, representing a cap rate of 4.36 percent and $1,595 per square foot. According to CoStar, this sale achieved a record-low cap rate for a single-tenant Starbucks in the High Desert region and a record high price per square foot in the city of Hesperia for a single-tenant retail sale.

Built in 2017 on .81 acres, the 2,000-square-foot drive-thru property is located at 11412 Fashion Court in Hesperia, near the signalized intersection of the Ranchero Road Exit on Interstate 15. According to Asher, the property benefits from excellent access, a (soon to be built) freeway-visible pylon sign and approximately 108,000 cars per day on Interstate 15. Starbucks opened in October 2017.

The buyer was a private investor based in Manhattan Beach, California, and was represented by Don Kustudia of Commercial Property Investments in Manhattan Beach. The seller, which was represented by Asher and Lefko, was National Development, Inc. from Hermosa Beach, California.

“We procured a 1031 exchange buyer that was very familiar with the High Desert trade area and structured a three-day escrow to help timely fulfillment of the buyer’s 1031 exchange requirement and achieve the seller’s sale goals,” said Lefko. “We successfully effectuated a mutually-beneficial transaction for both parties in a very short period of time.”

The Starbucks location has a café with a drive-thru format, said Asher. “Approximately 60-70 percent of all business for quick-service restaurants come through the drive-thru and average Starbucks store sales are approximately 50 percent greater in locations that have a drive-thru,” Asher noted. “It’s a significant selling point and characteristic for these types of properties and a major reason why single-tenant retail investors are paying premiums for single-tenant Starbucks investments.”

“Starbucks continues to be one of the most sought-after single-tenant retail investments in today’s market,” said Asher. “These transactions are a prime example of the incredible demand for Starbucks and affirm the continued strong demand for corporate-backed single-tenant net investments in dense, supply-constrained markets like Covina as well as underserved markets like Hesperia.”

About Hanley Investment Group

Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestment.com.